North Carolina Down Payment Assistance Programs

Online Payments - These systems would be the Down Payment Assistance Program along with the Mortgage Credit Certificate.

If you qualify for one of these programs and you purchase a property between January 1, 2009 and December 1, 2009, you can even qualify for the $8,000 tax credit just enacted into law.

First, who is a First Time Home Buyer? There is a first-time Home Buyer someone who has not owned a home in the prior three years. Here is the exact same qualifying definition for the $8,000 tax credit.

What is a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction. The MCC takes this a step farther. An MCC “reduces your tax liability based on a percentage of the mortgage interest that you pay.

In case you qualify for the MCC, it is possible to claim 20% of the interest you pay as a credit on your federal income taxes on your mortgage. You are able to save up to $2,000 on your taxes.

You may manage to join this with the $8,000 tax credit, should you qualify for 2009. This could reduce a buyer's tax liability by $10,000.

Who qualifies for an MCC is based in your income and also the purchase price of the home you're purchasing. Household income is defined as the “gross income of the mortgagor and any other individual expected to reside in the home who's 18 years old or older.”

House price limitations that apply in Durham, Orange and Chatham Counties and the income are given below.

MCC Income Limitations 1 Man $61,500 2 Individuals $61,500 3 Persons $70,500 4 Individuals $70,500

MCC Sales Cost Limitations New Dwelling $220,000 Existing Residence $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their down payment and closing prices may be able to get down payment assistance - or, in other words, interest-free, deferred second mortgages up to $8,000. The purchaser only has to pay $1,000 of their own funds and the load would pay around .

This plan has more stringent income limits than the MCC program outlined above. Like the MCC application, it can be used in conjunction with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment help, nevertheless, can't be used in combination with all the MCC. This is an either or scenario.

House price limits that apply in Durham, Orange and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Persons $45,650 3 Individuals $51,350 4 Men $57,050

Down Payment Support Sales Price Limits New Dwelling $210,000 Existing Residence $210,000